Audi sales have reportedly been hit by a dealer revolt, while Mercedes-Benz could be a contender for the top spot next year with a 22-percent jump in deliveries so far in 2017.
BMW is reportedly on track to become China's top-selling luxury brand for 2017.
Audi has apparently lost its leading position in the first 11 months of the year due to a dealer boycott over a failed plan to establish a second distribution network, according to Automotive News Europe.
BMW has taken advantage of the controversy surrounding Audi, with sales up by 15 percent to more than 542,000 units through the end of November. Mercedes-Benz, meanwhile, could take the crown next year after posting a 27-percent gain to nearly 540,000 units.
For many automakers, the US has taken a back seat as competition heats up in China. The country will soon celebrate a full decade as the world's largest automotive market, extending its lead since taking the top spot in 2009.